Unemployment levels increase in our region

LEVELS of both unemployment and economic inactivity have risen slightly in the North East, new figures show.

- GRAEME WHITFIELD

New figures on the labour market for the three months to the end of February show that unemployment in the North East stood at 4.8%, a slight rise on last month's figure but still historically low and only just above the national average.

But economic inactivity – people who are not in the workforce, typically due to early retirement, ill health or caring responsibilities – had climbed to 26.9%, the highest figure in England.

Taken together, the figures mean that the North East has the lowest proportion of people in work in the UK, sparking calls from business groups for action on some of the causes of economic inactivity, including long-term sickness and low skill levels.

Jessie Kelly-Baxter, senior policy advisor at the North East Chamber of Commerce, said: “Long-term sickness remains the most common reason for inactivity, accounting for 33.5% of those not in the labour market – the highest level in England and 5.3% above the UK average of 28.2%. However, this figure has fallen slightly from 34.6% in the previous dataset.